The shelter principle may apply to anyone who can trace his or her title back to an HDC.

Name: The shelter principle may apply to anyone who can trace his or her title back to an HDC.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The shelter principle allows anyone who can trace their title back to a holder in due course (HDC) to also retain HDC status, even if there were defects in the transfer of the title before it reached the current owner. Therefore, the statement is true.

The Shelter Principle May Apply to Anyone Who Can Trace